What aspects of the Aira Fitness system can be modified by the franchisor?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
state of Illinois (subject to state law). |
EXHIBIT J
STATE SPECIFIC ADDENDA TO FDD
Some administrators of franchise registration states may require us to include an addendum to the Aira Fitness Franchise Disclosure Document describing certain state laws or regulations which may supersede the Franchise Disclosure Document. If you are in a registration state which requires an addendum to the Franchise Disclosure Document, it will follow this page.
AIRA FITNESS FRANCHISING, LLC ADDENDUM TO THE DISCLOSURE DOCUMENT FOR THE STATE OF HAWAII
The Aira Fitness Franchising, LLC Disclosure Document for use in the State of Hawaii is modified in accordance with the following:
- For Hawaii franchisees, the conditions under which the franchise can be terminated and rights upon nonrenewal may be affected by Hawaii Revised Statutes, Section 482E-6.
AIRA FITNESS FRANCHISING LLC ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF ILLINOIS
Payment of Initial Franchise/Development Fees will be deferred until Franchisor has met its initial obligations to franchisee, and franchisee has commenced doing business. This financial assurance requirement was imposed by the Office of the Illinois Attorney General due to Franchisor's financial condition.
Illinois law governs the Franchise Agreement and Multi-Unit Development Agreement. In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Your rights upon Termination and Non-Renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
By reading this disclosure document, you are not agreeing to, acknowledging, or making any representations whatsoever to the Franchisor and its affiliates.
ADDENDUM TO THE AIRA FITNESS FRANCHISE AGREEMENT FOR THE STATE OF ILLINOIS
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- Payment of Initial Franchise/Development Fees will be deferred until Franchisor has met its initial obligations to franchisee, and franchisee has commenced doing business. This financial assurance requirement was imposed by the Office of the Illinois Attorney General due to Franchisor's financial condition.
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- Illinois law governs the Franchise Agreement and Multi-Unit Development Agreement. In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
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Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, the franchisor's ability to modify aspects of the franchise system is subject to state-specific regulations. Several states require addenda to the Franchise Disclosure Document (FDD) to address specific laws that may supersede the standard FDD. These addenda often relate to franchisee rights upon termination or non-renewal, and restrictions on waiving compliance with state franchise laws. For example, Hawaii franchisees' termination and non-renewal rights are affected by Hawaii Revised Statutes, Section 482E-6.
Illinois law governs the Franchise Agreement and Multi-Unit Development Agreement, and any provision designating jurisdiction and venue outside of Illinois is void, although arbitration outside of Illinois is permitted. Furthermore, any condition that binds a person to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. Virginia also has specific regulations, including the requirement to defer payment of the initial franchise fee until the franchisor has completed its pre-opening obligations. Additionally, Virginia law makes it unlawful for a franchisor to cancel a franchise without reasonable cause.
These state-specific addenda indicate that Aira Fitness must comply with varying legal requirements across different states, which may impact the enforcement and interpretation of certain clauses in the franchise agreement. Prospective franchisees should carefully review the addendum for their specific state to understand how these regulations modify the standard franchise terms and what rights they have under local laws. This ensures that franchisees are aware of their protections and obligations within their specific jurisdiction.